Published
By Bernie Cahiles-Magkilat
Laguna-based P.A. Alvarez Properties and Development Corporation
(P.A. Properties) is investing roughly P25 billion for the development
of 25 affordable housing projects over a five-year period in various
parts in Luzon.
Romarico “Bing” Alvarez, Chairman of P.A. Properties said in
a statement that these projects are expected to deliver 25,000 in new
housing units and could help alleviate the worsening backlog for
socialized and economic housing needs.
Each project has an estimated investment of P1 billion and 1,000 housing units per project.
For 2019-2020 alone, the company is targeting 226 hectares in new land acquisitions for P3.5 billion. These properties are located in
For 2019-2020 alone, the company is targeting 226 hectares in new land acquisitions for P3.5 billion. These properties are located in
Bulacan (San Jose del Monte, Norzagaray, Malolos); Laguna (Cabuyao,
Los Baños); Cavite (Dasmariñas); Pampanga (San Fernando); and, Batangas
(Tanauan, Sto. Tomas).
Target land acquisitions beyond 2020 are areas in Rizal, Bacolod, Davao, Iloilo and Cebu.
Alvarez noted that over the years, demand for housing has outstripped supply, driven by rural-to-urban and intercity migration in major cities such as Manila, Laguna, Clark, Cavite and Bulacan where people believe there are better prospects for employment.
Alvarez noted that over the years, demand for housing has outstripped supply, driven by rural-to-urban and intercity migration in major cities such as Manila, Laguna, Clark, Cavite and Bulacan where people believe there are better prospects for employment.
Alvarez cited a 2016 UA&P study, which showed an excess of around
253,300 high-end (or open market) houses and 307,740 mid-priced homes
in 2015, many of which were situated within the National Capital Region
(NCR) and the country’s other urban centers.
But, he stressed, other housing segments presented a different story.
In the socialized, economic and low-cost housing segments, for
instance, the housing backlog was so high that it is expected to reach
10.1 million units by 2030.
To date, Alvarez said, the socialized housing segment has a backlog
of 3,032,351 units while the economic housing segment has 2,588,897.
And the backlog continues to rise by 168,000 to 190,000 units a year, according to reports.
“With these figures, addressing the backlog will require investments beyond the capacity of the national and local budgets,” he said.
“These housing segments primarily cater to poor to lower middle
income classes which comprise 81.3 percent of the population,” Alvarez
said.
With close to 25 years of experience in developing affordable housing
and communities, P.A. Properties is well-positioned to capitalize on
the huge housing backlog with 137 hectares of landbank.
“The current housing backlog stands at over 5.9 million countrywide,
with socialized and economic housing accounting for the bulk of this
requirement. As a result, prevalence of informal settlements that lack
basic infrastructure and sustainable service has increased significantly
across most towns and cities,” said Alvarez.
“The government alone cannot meet the rapidly growing demand for decent shelter, particularly in urban areas.”
“The government needs to develop the synergies and participation of
all stakeholders, including the private sector, employers, citizens and
development partners in the provision of shelter,” added Alvarez. “For
its part, the government knows that policy-making, land acquisition and a
successful expropriation plan are critical to meeting the interests of
the general public.”
“People migrating to the cities and who are looking for places to
live in are taking matters into their own hands by occupying land –
building shacks and makeshift houses on vacant lots. Unless the
government and the private sector come up with solutions, the pattern of
land occupations and the clamor for decent housing will likely
continue.”
In 2017, P.A. Properties ended with P11.8 billion in total assets growing at a 2Y CAGR of 25.3 percent.
In the same year, the company infused P835 million in equity, increasing its total equity to P3.1 billion.
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